In the Rational Decision-Making Process, Optimization Means

question 64

Multiple Choice

In the rational decision-making process, optimization means:

• A) identifying obvious, standard alternatives.
• B) choosing the alternative with the best overall expected outcomes.
• C) gathering the most complete information before making the decision.
• D) developing the maximum number of creative, innovative alternatives.
• E) choosing an alternative that is feasible even if it is not satisfactory or has undesirable consequences.

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Definitions:

Incrementalism

A policy or strategy of making gradual changes or taking small steps instead of large, drastic actions.

Emergent Strategies

Emergent strategies develop over time as managers learn from and respond to experience.

Managerial Learning Curve

The process by which managers gain experiential knowledge that improves their decision-making, efficiency, and effectiveness over time.

Unrelated Diversification

A business strategy where a company expands into industries or markets that are not related to its existing business activities.